Kitron Asa · OSL:KIT
Kitron Asa — Q4 2012 Earnings Presentation
18 slides from Kitron Asa's earnings presentation, Feb 13, 2013
Slide 1: Q4 results 2012
Q4 results 2012 February 13th 2013 Jørgen Bredesen, CEO Björn Wigström, CFO
Slide 2: Financial highlights for Q4
Financial highlights for Q4: Strong growth in cash flow and profitability NOK mill. Q4 2012 vs Q4 2011 • Leap in profitability • Solid cash flow Revenue 462,4 4,4 % performance EBIT 23,4 416,3 % • Strong trend in Offshore/Marine & Order backlog 776,2 -2,9 % Defence/Aerospace Operating cash flo
Slide 3: Operational highlights for Q4: Operational improvements yields results
Operational highlights for Q4: Operational improvements yields results • Restructuring of Sweden completed • Operating costs reduced by 35% over two years • All manufacturing in one streamlined site • Improved customer satisfaction • China and Germany continue to deliver “black” figures • China prof
Slide 4: Major new orders: Key contracts secured in new markets
Major new orders: Key contracts secured in new markets • Major medical contract • Value of NOK 350-400 million over two years • Extension of existing contract • Production in Arendal and Ningbo • First contract in the Netherlands • Electronics for Lely’s milking robots • Agriculture an increasingly
Slide 5: Financial statements Q4 2012
Financial statements Q4 2012
Slide 6: Revenue: Activity level increasing
Revenue: Activity level increasing • Offshore/Marine drive growth 443 450 • New entities ramping up 416 462 activity level 366 4.4 % NOK million Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 6
Slide 7: Revenue by market segment: Offshore strongest growing market
Revenue by market segment: Offshore strongest growing market Q4 2012 vs Q4 2011 Share of total revenue Offshore/Marine High activity level in oil industry 78,5 % 18,8 % Strong market fundamentals for Medical equipment Kitron's products 8,8 % 30,6 % Defence/Aerospace Bullish about the long term o
Slide 8: Revenue by country: New entities ramping up
Revenue by country*: New entities ramping up Q4 2012 vs Q4 2011 Share of total revenue Norway 16,4 % 53,1 % Sweden -2,2 % 25,2 % Lithuania -25,8 % 14,2 % Others 374,0 % 7,5 % * Before group entities and eliminations 8
Slide 9: EBIT: Sharp rise in EBIT
EBIT: Sharp rise in EBIT 21,5 23.4 • Profitability improving • New entities turning profitable 15,4 • Successful restructuring in Sweden • Strong trend in Offshore/Marine and 10,6 high activity level drive profitability in + 416.3 % Norway 4,5 NOK million • Other profitability drivers: • Focus on op
Slide 10: EBIT by country: Norway and Sweden leading the way
EBIT by country: Norway and Sweden leading the way EBIT* NOK million • New entities: Steady progress 19 towards positive results • Norway: Change in revenue mix 11 10 8 and growth in higher margin 4 segments • Sweden: Positive effects of (1) restructuring • Lithuania: Lower revenue Q4 2011 (7) (8) Q
Slide 11: Balance sheet: Taking action to reduce inventory
Balance sheet: Taking action to reduce inventory Operating cash flow • Inventory reduction of NOK NOK million 84,8 50 million in the quarter +510 % • Further NOK 50 million reduction expected 13,9 -10,9 -16,1 -15,4 • Focus on inventory reduction across the group Net working capital • Common distribu
Slide 12: Market development
Your ambition. Our passion. 4 Kitron Market development
Slide 13: Order backlog: Stable activity level
Order backlog: Stable activity level • Mixed backlog trend by Order backlog market segment • Strong trend in Defence/Aerospace NOK million • Offshore/Marine stabilizes on higher level -2.9 % • Reduced backlog in other segments • Overall market situation 855 uncertain 824 • Selective customers report
Slide 14: Market development: Offshore/Marine and Medical equipment
Market development • Offshore/Marine • Expected to stabilize on current level following a period of strong growth • In dialogue with existing and new customers about new business opportunities • Medical equipment • Contract extension with largest customer in the segment improves visibility • Flat de
Slide 15: Market development: Defence/Aerospace, Energy/Telecoms, Industry
Market development • Defence/Aerospace • Promising long term outlook • Several major programs secured and expected to ramp up • Weaker outlook with Swedish defence customers • Energy/Telecoms • Expected to stabilize on current lower level • Lower demand in metering business offset by growth within o
Slide 16: Outlook
Outlook
Slide 17: Outlook
Outlook • Kitron works toward improved profitability • Focus on operational improvement projects has high priority • Restructuring in Sweden expected to have a positive impact on profitability • Improved profitability in new entities - US entity expected to reach break even in Q2 2013 • Target to re
Slide 18: Thank you!
Thank you! 18